FIXED INCOME MARKETS

Money Market

Opening system liquidity increased further today. Nonetheless, the Open Repo Rate (OPR) increased by 4 bps to 25.43%, while the Overnight Rate (O/N) decreased by 2bps to 25.85%.

Outlook: We expect interbank rates to cling to the same levels tomorrow.

Treasury Bills

The treasury bills market exhibited some bullish sentiment today, with buying interests on several bills, particularly February and March 2025 papers. Consequently, the average mid-rate across the benchmark NTB papers fell by 46bps to 23.13%. 

Outlook: We expect the bullish bias to persist.

FGN Bonds

The local FGN bond market settled bearish today. Noticeably, the bulk of today’s activity was cantered on the 2038, 2050 and 2053 maturities. As a result, the average mid-yield increased by 3bps to 19.63%.

Outlook: We expect market to remain bearish.

Equities

The Nigerian stock market closed bearish, as the All-Share Index decreased by 0.06% to reach 97,774.22 points. The year-to-date return and market capitalization settled at 30.76% and ₦55.51 trillion, respectively. FIDELITYBK recorded the highest trading volume with 1.33 billion units, as well as the highest value chart with ₦14.04 billion.

Outlook: We expect the bearish theme to persist.

Foreign Exchange

Naira appreciated against the USD by 0.76% to $/₦1,608.73.

Outlook: We expect volatility to persist.

Eurobonds

The Eurobonds market sustained a bearish theme today, as players took position ahead of Fed’s interest rate decision. Although, the bearish sentiment was intense on Nigeria and Egypt papers, compared to other African papers, which had a mixed theme. Thus, the average mid-yield for the Nigerian papers increased by 6 bps to 10.06%.

Outlook: We expect the Fed’s interest rate decision and forward guidance to drive activity tomorrow.

Commodities

Crude oil price jumped today after Hamas political leader Ismail Haniyeh was assassinated in Tehran, Iran, renewing fears that the Middle East is teetering on the brink of a regional war. Brent prices increased by 2.72% to $80.77, while WTI prices gained 4.11% to $77.80. Similarly, the price of gold increased by 0.79% to $2,471.20 per ounce.

 Outlook: We expect the volatility to persist.